The US$2.4tn worth of construction activities in the GCC is driving demand for wood products in the region, according to the organisers of the Dubai WoodShow.
Dubai WoodShow is the largest such exhibition in the Middle East, showcasing a wide-range of wood-based products.
Research shows that 70% of the timber and wood products are used in construction industry while the rest are used in real estate, interiors, furniture and other industrial applications.
The wood and wood-based products sector will get a further boost with the delivery of more than 25,000 homes in Dubai this year, especially when new home-owners start purchasing their furniture and home décor products, industry reports revealed.
The statistics reflect a growing demand for wood products in the region, primarily driven by the overall economic growth as well as the growth in the region’s construction activities.
With an average spent of US$2,722 on wooden products per home, this translates to a US$68mn spend in this year in Dubai alone.
However, with more than 35,000 residential units slated for delivery in 2018, spend on wooden products is expected to jump 40% to US$95mn.
In order to capture the market, more than 300 exhibitors from 100 countries are set to showcase their innovative solutions at the next edition of Dubai WoodShow, which will showcase new designs, style and product innovation on managing home space in innovative ways.
Dawood Al Shezawi, CEO, strategic marketing and exhibitions, organiser of the Dubai WoodShow, said: “The growth in the housing market will drive the wood, wood-related and timber business across the region and this creates a great opportunity for the industry.
“As families move to their new freehold homes, they will require a fresh supply of furniture and due to the tastes and trends, most families look out for authentic wooden furniture and products – wherein lies the new demand.
“However, consumers are also looking for replacing new, innovative products to replace the old furniture, especially those innovative furniture that help families to manage spaces in a better way. Those products will be in solid demand.”
Similar trends can be seen in the hospitality sector, where more than 100,000 hotel rooms and serviced apartments are currently in operation in Dubai alone.
Dubai will add 40,000 hotel rooms and service apartments to meet the growing demand of tourists as part of the build-up to the Expo 2020, which is less than three years away.
“As the hotel developers are racing against time to deliver more than 40,000 hotel rooms that will help the emirate to serve 20mn hotel guests annually as well as the 25mn visitors to Expo 2020 in six months’ time,” Al Shezawi, said.
“As we speak, a number of hotel operators are floating tenders for wooden beds, tables, and wooden interior products to offer greater comfort to hotel guests.
“This is going to be a great driver of demand for wooden products.”